US Scrutiny on Crypto Miners' Energy Use Sparks Community Backlash

• EIA Initiates a Temporary Survey on Crypto Mining Energy Consumption
• Survey Details
• Aims of the Survey
• Criticism from Mining Community
• Mining Energy Use: A Contention Point
• New EIA Survey Sparks Controversy

EIA Initiates a Temporary Survey on Crypto Mining Energy Consumption

The U.S. Energy Information Administration (EIA) has instigated a preliminary survey on electricity consumption from cryptocurrency mining operations. This move has garnered criticism from the crypto community.

Survey Details

Beginning next week, commercial miners that have been identified will need to provide information about their energy consumption. The Office of Management and Budget (OMB) approved this data collection request as an emergency measure, as stated in an EIA press release last Thursday.

Aims of the Survey

The EIA has plans to further examine and write about the energy implications of cryptocurrency mining activities in the United States. Their specific focus will be on tracking the evolution of energy demand for crypto mining, identifying regions with high growth rates, and quantifying the electricity sources fulfilling the mining demand.

Criticism from Mining Community

This move by the EIA has caused concern within the mining community, leading to some members suggesting that the miners should boycott the survey. Marty Bent, a Bitcoin$42,260 -0.64% advocate and head of mining firm Catherdra Bitcoin, expressed his concern that the EIA might be constructing an overly detailed registry of mining operations in the U.S.

While initially finding the initiative intriguing, Bent later labelled the survey Orwellian due to its demand for highly specific data, such as detailed information about mining fleets and hash rate data.

Mining Energy Use: A Contention Point

The energy consumption of crypto mining has been a contentious issue between regulators, lawmakers, and the industry. This began when the process evolved from requiring just a laptop to needing industrial-sized installations, leading to strong opinions on both sides.

In the previous year, a group of Democratic lawmakers, spearheaded by Sen. Elizabeth Warren (D-Mass.), sent a letter to the Environmental Protection Agency (EPA) and the Department of Energy. They implored the government to make crypto miners disclose their energy consumption data.

New EIA Survey Sparks Controversy

The EIA's latest survey efforts have irked the mining community due to its seemingly obligatory nature for commercial miners. Alex Brammer, Director at Bitcoin Today Coalition, noted on social media that the EIA has pre-drafted delinquency notices for non-complying companies. These notices include threats of criminal and civil penalties, including a daily fine of $10,633 for failure to report. Brammer labeled this as severe and urged for immediate legal action.

Edited by Jonathan Stoker